India imports over 85% of its crude oil, so blending home-made ethanol into petrol cuts both the import bill and emissions. Under the Ethanol Blended Petrol programme, the blending rate rose from 1.53% in 2013-14 to 19.2% in the supply year 2024-25 — hitting the E10 and E12 milestones early and reaching the 20% (E20) goal in 2025, five years ahead of the original 2030 target.
Ethanol Blending
Ethanol Blending
To cut oil imports and give farmers a new market, India has been blending ethanol — made from sugarcane and grains — into petrol. The blending rate rose from 1.53% in 2013-14 to 19.2% in the supply year 2024-25, meeting the E20 goal in 2025, five years ahead of the original 2030 schedule, saving over ₹1 lakh crore in foreign exchange and paying farmers tens of thousands of crores. The counter shows the ethanol blending rate.
19.93%
Blending reached (July 2025)
₹1 lakh cr+
Forex saved
E20
Achieved 2025, five years early
Ethanol in petrol
| Year | Ethanol blending |
|---|---|
| 2014 | 1.53 % |
| 2015 | 2.33 % |
| 2016 | 3.51 % |
| 2017 | 2.07 % |
| 2018 | 4.22 % |
| 2019 | 5.00 % |
| 2020 | 5.00 % |
| 2021 | 8.10 % |
| 2022 | 10.00 % |
| 2023 | 12.10 % |
| 2024 | 14.60 % |
| 2025 | 19.20 % |
| by 2025 | 20.00 % — Target · met |
2014
0.00%
Ethanol blending
20142025
Since 2014
Added
+17.67 %
2014
1.53 %
2025
19.20 %
Target · met
20.00 %
by 2025
E20 blending target — met early
Why it matters Ethanol blending cuts crude-oil imports and emissions while creating a stable market for farm surpluses — though it competes with food and water.
- Ethanol blending: 1.53% (2013-14) → 19.2% (supply year 2024-25); E20 achieved in 2025. The rate fell to 2.07% in 2016-17, when supply fell
- Saved ₹1 lakh crore+ forex; farmers paid ₹87,000 crore+
- Source: Ministry of Petroleum & Natural Gas
History
Notable impact
The programme has saved over ₹1 lakh crore in foreign exchange, cut CO2 emissions by tens of millions of tonnes, and paid sugarcane and grain farmers over ₹87,000 crore — creating a valuable new market for farm surpluses. It relies on India's position as a top sugarcane producer and on surplus rice and maize.
How it works
Ethanol — alcohol made from sugarcane or surplus grains — is blended into petrol so every litre at the pump is part home-grown fuel. It cuts crude imports, gives sugar mills and farmers an extra market, and burns cleaner. Oil companies buy ethanol from distilleries at set prices and mix it in; the same idea extends to compressed biogas from farm and city waste, and biodiesel — turning agricultural surplus and waste into energy.
Outlook
India hit its 20% ethanol-blending (E20) target in 2025, years ahead of the original 2030 goal — a shift that has saved well over ₹1 lakh crore in foreign exchange and cut oil imports. The central balance ahead is energy versus food and water: pushing blending higher (and rolling out flex-fuel vehicles) without diverting too much land, grain and water — so more biofuel comes from waste and non-food crops rather than the foodgrain plate.
By the numbers
1.53% → 19.2% ethanol blending (2013-14 → supply year 2024-25); E20 achieved in 2025. ₹1 lakh crore+ forex saved; ₹87,000 crore+ to farmers. Sources: MoP&NG, PIB.
Data current to: Ethanol supply year 2024-25 (to October 2025)
Source: Average ethanol blending in petrol by public-sector oil marketing companies, by ethanol supply year (November to October), labelled by the year the supply year ends. Two official tables: NITI Aayog and MoP&NG, Roadmap for Ethanol Blending in India 2020-25, Table 4.2, for the actuals from 2013-14 to 2019-20; and MoP&NG via PIB, 10 July 2026 (linked), for 2020-21 to 2024-25. The rate fell in 2016-17 because supply fell. The 19.93% sometimes quoted is July 2025 alone, and the 20% quoted for 2025-26 covers only November 2025 to June 2026, so neither is plotted as a year. · link